A businessman knew that he was facing substantial losses from pending litigation.Shortly before declaring bankruptcy,he transferred his interest in the matrimonial home to his wife.What was the result?

Question

Quizplus · Accepted Answer

Transferring assets before bankruptcy to avoid creditors is considered a bankruptcy offense under the Bankruptcy and Insolvency Act. The transfer of the matrimonial home to the businessman's wife was done with the intention of avoiding potential losses from pending litigation, which is a clear violation. Thus, the court would reverse the transfer of the property.

A Businessman Knew That He Was Facing Substantial Losses from Pending